Notional Income Of Ordinary Worker Must Be Determined Based On Fair Wages At Time Of Awarding Compensation: Kerala High Court

The Kerala High Court has observed that the notional income of an ordinary worker has to be fixed after considering the fair wages applicable at the time of calculating the compensation and not based on his earning capacity at the time of the accident. Justice Johnson John stated that earning less than fair wages at the time of the accident should not be a reason to deprive parity in notional income. “It cannot be disputed that even a casual worker is entitled for fair wages and the notional income of an ordinary worker has to be fixed after considering the fair wages at the relevant time and only because the appellant was earning less than the fair wages at the time of occurrence, he cannot be denied parity in the matter of notional income, as it is well settled that beneficial legislations with social objective are expected to be interpreted in favour of those for whose benefit the said legislations are made.” The appellant while riding his motorcycle was hit by an autorickshaw that was being driven rashly and negligently. and Syed Sadiq and Others v. Divisional Manager, United India Insurance Company to state even in the absence of evidence, monthly income of an ordinary worker must be fixed at rupees 4,500 and for subsequent years, the monthly income could be adjusted by adding rupees 500 per year.